SWEDEN - Första AP-fonden (AP1) posted a net income of SEK20.5bn ($3.2bn) after expenses in 2010, returning 10.2% for the year.
The fund totalled SEK218.8bn in assets under management at the end of 2010, an increase of SEK16.5bn. It put the solid returns down to improving stock markets after it raised its allocations to domestic and emerging market equities, although fixed income assets also performed well. The five-year annualised return on net assets after expenses was on average 3.5%.
AP1 held 60.3% in equities, 32.5% in fixed income and 7.8% in alternatives at the end of December.
AP1 managing director Johan Magnusson said: "With the good results for 2009 and 2010 we have now recouped the value decline that was caused by the financial crisis, which is positive for future pensions. The previous cost-cutting measures reached full effect during 2010 and our costs are now significantly lower than those of many other similar managers.
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